(MENAFN- Trend News Agency)
Experts of the International Monetary Fund (IMF) think that
there are significant downside risks for the US economy this year
and especially next year, IMF Managing Director Kristalina
Georgieva said presenting the annual report on the state of the
American economy in Washington, Trend reports citing TASS .
'We see very significant downside risks [in the US economy] this
year and especially next year,' she said. Georgieva noted that,
according to the baseline scenario, which is being considered by
the IMF, the US economy is unlikely to avoid a recession.
High energy prices pose risks to the global economy and also
affect the pace of its development, Georgieva told.
'Where we see the snaring path ahead it and what are the biggest
risks any of course, high energy prices. This is a risk for US
economy and for the world economy as a whole. Not only because it
affects inflation, but because it has a broader consequences for
growth prospects. When we look at the potential for some withdrawal
of oil supply, that of course, could create an it does create
further pressure on oil prices,' the head of IMF said.
According to her, the IMF assessed 'what could that result
'We do see the need for a policy that would prevent further
upward pressure on oil prices,' she said. Georgieva added that many
developing countries were in a very difficult situation under the
Georgieva said she had discussed with US Treasury Secretary
Janet Yellen the importance of implementing policies that help keep
this upward pressure on oil prices under control as much as
The Fund's Managing Director also stressed that the situation
around food in the world next year could become worse than this
year, not only because of what is happening in Ukraine, but also
because of crop failures in a number of countries.
IMF finds it important to fight inflation in the US to bolster
growth prospects for the future, but the necessary government
action can affect US consumers in the short term, Georgieva
'I want to say something that sometimes is left unthought and it
is the importance to fight inflation today. This is a top priority
for a reason because if we don't secure price stability, it would
be negative for growth and it will be negative for incomes will
affect people. It will affect families dramatically. So, it is an
important step to be taken and success. Over time will be
beneficial for global growth. But some pain to get to that success
can be a necessary price to pay,' she said.
She declined to comment on the US Supreme Court's decision to
strike down federal guarantees for abortions. Georgieva only noted
that gender equality benefits the economy.
On Friday, the IMF cut its 2022 growth forecast for the US
economy by 0.8 percentage points to 2.9%. For 2023, the IMF lowered
its forecast from 2.3% to 1.7% and now expects growth of 0.8% in
2024. In October last year, the similar forecast of the fund for
the current year was 5.2%.
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